Congress includes a $50 billion tobacco-tax credit in a new tax bill.
New taxes paid by smokers will save the industry billions of dollars by
reducing the amount of money companies would owe according to the
settlement.

9/11/97

Senate votes to repeal the $50 billion tax break for the tobacco
industry that was slipped into the tax cut legislation just before it was
passed in July.

9/17/97

Clinton announces his position on the upcoming tobacco legislation in
Congress.

12/4/97

Cong. Bliley subpoenaes documents from four tobacco companies that are
part of the Minnesota Medicaid case. The documents are released to his office
and to the public later that week.

12/10/97

Hearings in Congressional Judiciary Committee on Lawyers Fees in the
national tobacco settlement.

1/29/98

Tobacco executives testify before Congress that nicotine is addictive
under current definitions of the word and smoking may cause cancer.

2/25/98

Tobacco executives told Congress they would never agree to modify their
advertising and marketing practices unless the lawmakers gave the industry
substancial protection against lawsuits.

4/1/98

Sen. John McCain (R-AZ) passes the McCain bill in the Senate Commerce
Committee. The bill gives the FDA unrestricted control over nicotine and is
much tougher than the June 20th agreement. It provides no liability protection
for the industry, just a cap on potential yearly damages.

4/8/98

Steven Goldstone of RJR Nabisco announces that RJR is pulling support
for a settlement and complains that the McCain bill will bankrupt his company.
Within hours, the rest of the tobacco industry backs away from the global
settlement.